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When selling pressure on a stock has been sustained for some time, often the stock will have a recovery if investors realize that their extended bearishness was unwarranted or the stock dips to an attractive valuation.

With that in mind, we wanted to look for micro cap cap stocks that have seen continued selling pressure from mutual funds, both in the previous quarter and current quarter. The screen produced a list of 19, found below.



Are these names on the cusp of a recovery? Use this list as a starting-off point for your own analysis into stocks under selling pressure.

List sorted by market cap.

1. The Standard Register Company (SR):
Office Supplies Industry. Market cap of $101.72M. Net mutual fund shares sold during the current quarter at 404.3K and 122.5K net mutual fund shares sold in the previous quarter. SR offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.78%, current ratio at 2.2, and quick ratio at 1.83. The stock is a short squeeze candidate, with a short float at 12.22% (equivalent to 12.44 days of average volume). The stock has lost 32.95% over the last year.



2. G. Willi Food-International Ltd. (WILC): Food Industry. Market cap of $101.78M. Net mutual fund shares sold during the current quarter at 29.5K and 120.6K net mutual fund shares sold in the previous quarter. The stock has gained 26.05% over the last year.



3. TranS1, Inc. (TSON): Medical Instruments & Supplies Industry. Market cap of $103.77M. Net mutual fund shares sold during the current quarter at 174.6K and 2.4K net mutual fund shares sold in the previous quarter. TSON is exhibiting strong upside momentum--currently trading 6.54% above its SMA20, 26.08% above its SMA50, and 75.61% above its SMA200. The stock has had a good month, gaining 18.33%.



4. StemCells Inc. (STEM): Biotechnology Industry. Market cap of $104.17M. Net mutual fund shares sold during the current quarter at 142.0K and 331.7K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 6.83% (equivalent to 14.62 days of average volume). The stock is currently stuck in a downtrend, trading 7.52% below its SMA20, 11.8% below its SMA50, and 18.25% below its SMA200. The stock has performed poorly over the last month, losing 11.86%.

5. Middleburg Financial Corporation (MBRG): Regional Bank. Market cap of $104.80M. Net mutual fund shares sold during the current quarter at 35.3K and 27.6K net mutual fund shares sold in the previous quarter. The stock has lost 12.84% over the last year.

6. Preferred Bank (PFBC): Regional Bank. Market cap of $106.16M. Net mutual fund shares sold during the current quarter at 69.6K and 39.3K net mutual fund shares sold in the previous quarter. The stock has had a couple of great days, gaining 8.05% over the last week.

7. Fuqi International, Inc. (OTCPK:FUQI): Recreational Goods, Other Industry. Market cap of $106.38M. Net mutual fund shares sold during the current quarter at 272.0K and 126.3K net mutual fund shares sold in the previous quarter. The stock has had a couple of great days, gaining 10% over the last week.

8. Research Frontiers Inc. (REFR): Business Services Industry. Market cap of $108.95M. Net mutual fund shares sold during the current quarter at 17.9K and 3.6K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 10.17% (equivalent to 14.08 days of average volume). The stock has gained 70.29% over the last year.

9. Pervasive Software Inc. (PVSW): Application Software Industry. Market cap of $109.87M. Net mutual fund shares sold during the current quarter at 59.0K and 722.8K net mutual fund shares sold in the previous quarter. The stock has gained 38.95% over the last year.

10. CardioNet, Inc. (BEAT): Medical Instruments & Supplies Industry. Market cap of $110.61M. Net mutual fund shares sold during the current quarter at 440.9K and 795.7K net mutual fund shares sold in the previous quarter. The stock has lost 50.05% over the last year.

11. Build-A-Bear Workshop Inc. (BBW): Toy & Hobby Stores Industry. Market cap of $111.33M. Net mutual fund shares sold during the current quarter at 587.0K and 208.4K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 9.26% (equivalent to 11.88 days of average volume). The stock has lost 31.32% over the last year.

12. China Natural Gas, Inc. (OTC:CHNG)
: Gas Utilities Industry. Market cap of $114.70M. Net mutual fund shares sold during the current quarter at 992.6K and 25.3K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 8.16% (equivalent to 5.38 days of average volume). The stock has lost 40.22% over the last year.

13. Anika Therapeutics Inc. (ANIK): Biotechnology Industry. Market cap of $114.95M. Net mutual fund shares sold during the current quarter at 84.0K and 88.2K net mutual fund shares sold in the previous quarter. After a solid performance over the last year, ANIK has pulled back during recent sessions. The stock is 7.07% below its SMA20 and 8.98% below its SMA50, but remains 21.33% above its SMA200. The stock has gained 22% over the last year.

14. NASB Financial Inc. (NASB): Savings & Loans Industry. Market cap of $116.40M. Net mutual fund shares sold during the current quarter at 59.3K and 31.9K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 11.17% (equivalent to 56.61 days of average volume). The stock has had a couple of great days, gaining 9.47% over the last week.

15. China North East Petroleum Holdings Limited (NEP): Oil & Gas Drilling & Exploration Industry. Market cap of $116.92M. Net mutual fund shares sold during the current quarter at 86.2K and 342.5K net mutual fund shares sold in the previous quarter. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). It's been a rough couple of days for the stock, losing 8.99% over the last week.

16. Insignia Systems Inc. (ISIG): Marketing Services Industry. Market cap of $118.68M. Net mutual fund shares sold during the current quarter at 65.1K and 1.0K net mutual fund shares sold in the previous quarter. The stock has gained 5.96% over the last year.

17. SRS Labs Inc. (SRSL): Semiconductor Equipment & Materials Industry. Market cap of $119.62M. Net mutual fund shares sold during the current quarter at 88.3K and 11.6K net mutual fund shares sold in the previous quarter. The stock is a short squeeze candidate, with a short float at 7.18% (equivalent to 14.62 days of average volume). The stock has performed poorly over the last month, losing 11.25%.

18. Winner Medical Group Inc. (WWIN):
Diversified Investments Industry. Market cap of $119.68M. Net mutual fund shares sold during the current quarter at 4.5K and 206.8K net mutual fund shares sold in the previous quarter. The stock has had a good month, gaining 10.71%.

19. Integramed America Inc. (INMD): Medical Practitioners Industry. Market cap of $119.85M. Net mutual fund shares sold during the current quarter at 16.9K and 79.8K net mutual fund shares sold in the previous quarter. The stock has gained 16.95% over the last year.

*Mutual fund data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

[Author's Note: Data was collected on Thursday afternoon, April 28, sourced from Fidelity. Holdings may have changed since date of data collection]

Source: 19 Micro Cap Stocks Being Dumped by Mutual Funds